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The State Budget (1 Viewer)

Generator

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NSW plunges into the red
Anne Davies
June 6, 2006 - 12:30PM


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The Iemma Government is counting on its ability to rein in public service wages, and a modest recovery in the property market to turn around its budget performance, after reporting a bigger than expected deficit of $696 million for 2006-07.

Delivering his first budget, Treasurer Michael Costa today sought to reassure NSW voters, who will go to the polls next March, that the deficit would be a one-off event.

He forecast that the budget would return to surplus in 2007-08 with a surplus of $378 million, rising solidly over the following two years.

[continued]
So, any thoughts? What of the Opposition and the upcoming election?
 

frog12986

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This type of budget is expected given that election mode is well and truly underway. Whilst the opposition have some good policies and ideas about the direction of NSW, a 16 seat turn-around in one election is slightly out of reach. Iemma, as clueless as he is, should retain a reduced majority primarily due to the apolitical climate at present, and his attempts to distance himself from the policies of his predecessor.

The opposition need to start laying their platform for the election, to allow the electorate to absorb what and how they will govern differently. I for one know that the local Liberal Representative in my area has already begun campaigning and is showing a positive and strong approach in terms of policy and approach.

If there is one area in which the opposition needs to commit, it is the re-direction of resources within the public service; from senior bureaucratic positions, to the front line. Its a cliche, but its also a reality. For too long, service delivery, the primary responsibility of the state tier of government, has been compromised by mass inefficiency and uneven allocative prioritisation within the public sector.
 
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banco55

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I'd be interested to see an economic model of how much would be saved by the Federal government absorbing state level functions.
 

Sonic

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very risky stuff... he's banking on the fact that the market will stay stable and even grow. we can't be too sure and that will not look good on his resume; if on the other hand he does pull off a surpuls i doubt it will be in the magnitude stated it will be just above break-even.
I do agree with frog12986 in that labour will again scrape in a victory but it all depends on what they'll setup in the coming months eg. outfall with CCT, additionally how they present themselves to the public. :) good old do your work before the elections...
Banco55 presents a good point but one that i see as not possible given the levels that need to be absorbed and the red tape that has to be overcome; think about the initial cost of setting up the process..
 

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